Selling “stop loss” investors suddenly “turn the car”
Investors “turn the wheel”
In 2 years, experiencing 4 consecutive waves of Covid – 19 disease has made the real estate market in Da Nang less exciting than before. Many investors are embracing tourism and resort real estate in this area since the peak, also had a headache to find a way to exit, even cut losses for a long time, but the market has not been interested by investors. .
However, so far, tourism has shown signs of improvement after a long time of being held back. Realizing the potential of real estate will pop up after tourism is opened wide, investors are “hugging goods” determined to hold on.
Mr. Chu Van, a real estate broker, said that from mid-March until now, many owners have stopped consigning condotel apartments for sale. Notably, many apartments that were sold quickly, selling at a loss of up to 700 million VND before were also withdrawn.
“From the beginning of the year to the end of February, a total of 18 condotels in Son Tra and Ngu Hanh Son districts were consigned to us for sale. Of which, 80% were selling at a loss of 500-700 million dong/unit. By the middle In March, the owner gradually withdrew and stopped selling, only 4 units remained thanks to continuing to sell but reduced by about 50-60 million VND/unit”, this broker said.
Anh Thanh, another broker, shared that the fact that many owners are withdrawing and not continuing to sell at a loss of condotels is real, he and many colleagues are not surprised by that. The reason is that the city is and is about to receive abundant international visitors in the near future, apartment rental is forecasted to be as good as it was before the epidemic.
“My group previously accepted to sell 15 condotels in the coastal Son Tra district, but the situation was very sluggish. Over the past time, domestic tourism has gradually improved, the city also welcomes international guests back, so the owner also gradually withdrawing and not selling. Currently, the apartments are being rented very well.
By the beginning of this April, my group only accepted to sell two apartments, the owner did not reduce the price sharply to cut losses anymore,” Thanh said.
Some other brokers, it is confirmed that many owners have been withdrawing the sale of condotel apartments. Some continue to send brokers and the brokers no longer offer discounts, cutting losses deeply.
According to Nguyen Thao, an investor in Hanoi, before the outbreak, she bought a condotel apartment for 1.6 billion VND. However, unfortunately for her when the transaction was completed, the epidemic broke out, causing tourism to be “frozen”. Accordingly, her condotel “closed the door” for a long time.
“In the middle of 2021, I asked a broker to sell and cut a loss of 400 million dong, but I struggled for a long time and still could not find a buyer. Broker advised me if I want to sell quickly, I have to lower the price. Seeing a loss, I had to withdraw and not sell anymore,” Thao said.
According to this investor, now that tourism has been opened at full capacity, her apartment has also been rented to guests, so she will keep renting to make up for the quiet time before. Besides, investors are waiting for the Land Law to be corrected and legalized for this new type of real estate, then there may be a “fever” of resort real estate.
Rental price increase
According to a report by Cushman & Wakefield Vietnam, as of the first quarter, the total supply of 4-5 star hotels in Da Nang was 11,000 rooms, unchanged in the past two years. Over the next three years, about 4,000 rooms across 19 private hotels will open across the city.
The average room rate was 70 USD/room per night (equivalent to 1.6 million VND), up 3% QoQ and 20% YoY. Hotel occupancy came in at 30%, up 10.2% and 3.2% quarter-on-quarter and year-on-year, respectively, driven by a rebound in domestic tourism during the Lunar New Year holiday in early February.
Da Nang and Quang Nam have joined together with Thua Thien – Hue province in the program “Three localities, one destination” to promote natural tourism products and historical cultural heritages of the Central region.
“Like Ho Chi Minh City and Hanoi, in recent years, Da Nang has seen significant improvements in economic growth, mainly due to industrial production. We expect Da Nang to have a reputation for strength. High-skilled labor force will be Vietnam’s new Silicon Valley,” said experts from Cushman & Wakefield.
Along with that, international flights will resume normal operations from March 15, accompanied by the “Vaccine Passport” program. The decision to open tourism nationwide will attract a large number of foreign tourists back to Vietnam, contributing to stirring up tourism activities of the country.
The open-door policy for travel between Vietnam and other countries will also make the real estate market more exciting, not only in the hotel and resort segment but also in the serviced apartment segment.
Savills research indicates that Japanese and Korean professionals are the main tenants of Grade A serviced apartments, with a 79% market share in the first half of 2021 and increasing to 84% in the remaining two quarters.
According to Neil MacGregor, Managing Director of Savills Vietnam, the strong inflows of foreign direct investment into Vietnam over the past year partly confirm the large number of international experts who are and will be working in the country. . Once the international flight route is resumed, they will come to our country for long-term work, contributing to bringing the serviced apartment segment back to its previous growth momentum.
According to the Global Buyer Survey 2021, health care system, air quality, and green space are the top criteria for people to choose where to live. Therefore, Savills predicts that branded serviced apartments will have a great advantage when they have cooperation programs with medical organizations to ensure the safety and improve the health of residents at the project.
With the available demand from domestic and international, the prospect of resort real estate and serviced apartments will still depend heavily on the Government’s strategy and the epidemic situation in the near future.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
